The British Airways Pension Fund has bought the Chapel Quarter in Nottingham for £25.6m.
The price represents a net initial yield of 7.14%
The deal represents one of the biggest investment deals in Nottingham since The Cornerhouse was sold three years ago for £50m.
The Chapel Quarter is a 145,000 sq ft leisure and office complex located at the junction of Maid Marian Way and Upper Parliament Street. It comprises four floors of offices, ground floor leisure unit and a 120-bed Holiday Inn Express hotel. Office tenants include Thomson Reuters, Barclays Bank and Global Radio – which broadcasts Capital FM from the site, while Las Iguanas, Fat Cat Café Bar, and ASK Italian occupy the ground floor.
The property has an annual rent roll of nearly £1.93m, with an average remaining lease length of 11 years.
A joint venture between Stainton and a group of Middle Eastern investors paid £20m for the Chapel Quarter in December 2011.
GBR Phoenix Beard and FHP jointly advised the purchaser. JLL adviser the private overseas vendors.
